GS Options
Goldman Sachs Group Inc. Options Chain, Implied Volatility & Greeks
Comprehensive options market data for Goldman Sachs Group Inc. (GS). Explore implied volatility patterns, options chain liquidity, gamma exposure levels for the premier global investment bank.
GS Options at a Glance
What's Covered in This Guide
1 About Goldman Sachs Group Inc. (GS)
Goldman Sachs is a leading global investment bank and financial services company. Known as the most prestigious firm on Wall Street, Goldman provides investment banking, securities, investment management, and consumer banking services to corporations, institutions, and high-net-worth individuals.
Company Profile
Key Dates
Goldman Sachs is the benchmark for investment banking. Its trading revenues, deal activity, and market commentary are closely watched as indicators of Wall Street health and M&A activity.
2 GS Options Market Overview
GS options offer exposure to investment banking and trading revenue cycles. Volume is moderate but institutional participation is high.
Liquidity Assessment: Very Good
GS options have solid liquidity though spreads are wider than JPM due to higher stock price. Institutional flow dominates.
3 GS Volatility Profile
GS implied volatility reflects investment banking cyclicality and market risk exposure. IV increases during M&A droughts and trading volatility spikes.
Earnings Impact
IV builds before quarterly reports. Investment banking and trading revenue variability creates earnings uncertainty.
Historical Volatility vs IV
IV typically runs slightly above HV. Premium expands during deal flow uncertainty.
Term Structure
Usually contango. Can flatten during market stress as near-term uncertainty rises.
GS Gamma Exposure (GEX)
Gamma Exposure analysis for GS shows institutional hedging around major price levels.
Typical GEX Profile: GS gamma is typically balanced with institutional hedging at round strikes.
Key Levels: $50 strike intervals attract significant open interest. ATM strikes see concentrated positioning.
Dealer Hedging: Dealer hedging flows are moderate and orderly given institutional client base.
4 Common GS Options Strategies
These are strategies commonly used by traders on GS options, based on typical market characteristics. This is not investment advice.
Spreads around earnings manage high premium costs. Popular for playing M&A cycle turns.
Used by holders to generate income during sideways periods between earnings.
Pre-earnings straddles capture unpredictable trading revenue results.
Credit put spreads at support levels. Goldman's reputation provides psychological support.
Used for leveraged long-term exposure to investment banking cycle recovery.
Key Considerations for GS Options
- GS revenue is highly cyclical - M&A activity drives investment banking fees
- Trading revenue can swing significantly quarter to quarter
- Consumer banking (Marcus) has been volatile and is being restructured
- IPO market activity significantly impacts underwriting revenues
- Compensation expenses are high and somewhat fixed, creating operating leverage
- Goldman is seen as a barometer for Wall Street health
Frequently Asked Questions: GS Options
How liquid are GS options?
GS options have very good liquidity with average daily volume exceeding 80,000 contracts. Spreads are wider than some peers due to the higher stock price.
What is GS's typical implied volatility?
GS implied volatility typically ranges from 18% to 65%. Normal conditions see IV between 25-38%, with increases during earnings and market stress.
How does M&A activity affect GS options?
M&A activity is a key revenue driver for Goldman. Active deal markets boost the stock while M&A droughts pressure earnings expectations and volatility.
When does GS report earnings?
GS reports quarterly in January, April, July, and October, typically early in earnings season alongside other major banks.
Why are GS options spreads wider?
GS stock price (~$400+) is higher than many peers, resulting in wider dollar spreads. Percentage spreads are comparable to other liquid financials.
What is the best time to trade GS options?
The most liquid trading hours for GS options are typically during regular market hours (9:30 AM - 4:00 PM ET), with highest volume around market open and close.
How do I calculate GS option Greeks?
Use our free Options Calculator or Greeks Heatmap tool to calculate delta, gamma, theta, vega and other Greeks for GS options across all strikes and expirations.
What happens to GS options at expiration?
In-the-money GS options are typically auto-exercised at expiration. Out-of-the-money options expire worthless. Consider closing positions before expiration to avoid assignment risk.
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